Technology Upgradation and Quality Certification

1.1. Financial Support to MSMEs in ZED Certification Scheme

The objectives of the scheme include inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement and supporting the Make in India initiative.

The ZED Certification scheme is an extensive drive to create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED and support them. After ZED assessment, MSMEs can reduce wastages substantially, increase productivity, expand their market as IOPs, become vendors to CPSUs, have more IPRs, develop new products and processes etc.

The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for their certification so as to:

Encourage MSMEs to constantly upgrade their quality standards in products and processes.

Drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.

Support ‘Make in India’ campaign.

Develop professionals in the area of ZED manufacturing and certification.

Nature of assistance

Assessment & Rating/Re-rating/Gap analysis/Hand holding

The subsidy provided by the Government of India for Micro, Small & Medium Enterprises will be 80%, 60% and 50% respectively. There shall be an additional subsidy of 5% for MSMEs owned SC/ST/women and MSMEs located in NER and J&K for assessment & rating/re-rating/gap analysis/hand holding:

(i) Create new jobs and reduce unemployment (ii) Promote entrepreneurship culture in India (iii) Boost Grassroots economic development at district level (iv) Facilitate innovative business solution for un-met social needs, and (v) Promote innovation to further strengthen the competitiveness of the MSME sector.

Nature of assistance

NSIC/KVIC or Coir Board or any GoI or State Government agency to set up 80 Livelihood Business Incubators for the period 2014 to 2016. The objectives are: Promotion of Innovation, Entrepreneurship and Agro-Industry organisation of the M/o MSME, and one-time grant of 100% of cost of Plant & Machinery other than the land and infrastructure, or an amount up to Rs 100 lakhs, whichever is less is to be provided In case of incubation centres to be set up under PPP mode with NSIC, KVIC or Coir Board or any other Institution/agency of GoI/State Government, one- time grant of 50% of cost of Plant & Machinery, other than the land and infrastructure, or Rs 50.00 lakhs, whichever is less is to be provided.

Assistance towards the training cost of incubates will be met out of the ATI scheme of the Ministry as far as possible for both centres. Total budget plan is Rs 62.50 cr for 2014-2016.

Who can apply?

The Scheme aims to implement the Incubation and Commercialisation of Business Ideas Programme through technical / research institutes, including those in the field of agro based industry. These would be designated as Knowledge Partners and would incubate new/existing technologies for their commercialisation.

The scheme also provides funds for the incubator/incubation and creates necessary synergy between this scheme and the Livelihood Business Incubators/Technology Business Incubators and Incubation schemes of MSME / NSIC / KVIC / Coir Board / Other Ministries/Departments as well as Private incubators.

How to apply?

Application can be sent to Aspire Scheme Steering Committee of the Ministry of MSME. The Scheme Steering Committee will be responsible for overall policy, coordination and management support. The Council will be chaired by Secretary, Ministry of MSME.

1.3. National Manufacturing Competitiveness Programme (NMCP)

CLCSS provides 15% subsidy for additional investment up to ₹ 1 cr for technology upgradation by MSEs. Technology upgradation would ordinarily mean induction of state-of-the-art or near state-of-the- art technology. In the varying mosaic of technology covering more than 7,500 products in the Indian small scale sector,

Units looking to replace existing equipment/technology with the same equipment/technology will not qualify for subsidy under this scheme. Similarly, units upgrading with used machinery would not be eligible under this scheme.

Nature of assistance

The revised scheme aims at facilitating technology upgradation by providing 15% up front capital subsidy to MSEs, including tiny, khadi, village and coir industrial units, on institutional finance availed by them for induction of well established and improved technologies in specified sub-sectors/products approved under the scheme.

1.3.2. ISO 9000/ISO 14001 Certification Reimbursement

Related Scheme

ISO 9000/ISO 14001 Certification Reimbursement

Description

In order to enhance the competitive strength of SMEs, the scheme provides incentives to those SMEs/ancillary undertakings that have acquired ISO 9000/ISO 14001/HACCP certification. The scheme is enlarged so as to include reimbursement of expenses in the acquisition of ISO 14001 certification.

Nature of assistance

The scheme envisages reimbursement of charges incurred for acquisition of ISO-9000/ISO-14001/HACCP certification to the extent of 75% of expenditure, subject to a maximum of ₹75,000 in each case.

Who can apply?

The scheme is applicable to MSEs/ancillary/SSSB units that have already acquired ISO-9000/ISO-14001/ HACCP certification.

How to apply?

MSEs with their registration no. are required to submit their application, duly completed, to their local Director, MSME-DI, addresses given in the website: http://www.dcmsme.gov.in.

1.3.3. Marketing Support/Assistance to MSMEs (Bar Code)

Under this scheme the Ministry conducts seminars and reimburses registration fees for bar coding in order to encourage MSEs to use bar-codes.

Nature of assistance

Reimbursement of registration fee (one time and recurring for 3 years) for bar coding. Financial assistance for reimbursement of 75% of one-time registration fee (Under MSE-MDA) and 75% of annual recurring fee for first three years (Under NMCP) paid by MSEs to GS1 India for the use of bar coding.

Who can apply?

The scheme applies only to MSEs with and registration with GS1 India for use of barcode.

1.3.4. Lean Manufacturing Competitiveness for MSMEs

The objective of the scheme is to enhance the manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing (LM) techniques.

Nature of assistance

Financial assistance is provided for implementation of lean manufacturing techniques, primarily the cost of lean manufacturing consultant (80% by GoI and 20% by beneficiaries). Lean manufacturing consultants (LMCs) will raise bills for services provided to Special Purpose Vehicle (SPV). SPV will, in turn, pay the first installment of 20% to the LMC and will obtain reimbursement from the NMIU. Thereafter, Ministry of MSME will transfer funds to the NMIU. SPV payments to LMC will be on a milestone basis in 5 tranches, each of 20% of the amount fixed.

Who can apply?

The scheme is open to all manufacturing MSEs. The units are required to form MC, ideally of 10 units each with a minimum 6, by signing among themselves a Memorandum of Understanding anMoU to participate in the scheme.

How to apply?

A group of SMEs can apply for the scheme. Either a recognised SPV can apply on its own, or a mini cluster can be formed by a group of 10 or more such units.

The SPV can apply to the National Monitoring and Implementing Unit (National Productivity Council for the Scheme) in the given format.

1.3.5. Design Clinic for Design Expertise to MSMEs

Related Scheme

Design Clinic for Design Expertise to MSMEs

Description

The scheme is for increasing competitiveness of MSMEs through adoption of design and its learning.

Nature of assistance

Funding support of (1) ₹60,000 per seminar and 75% subject to a maximum of ₹3.75 lakhs per workshop, (2) To facilitate MSMEs to develop new Design strategies and or design related products and services through project interventions and consultancy.

(Government of India contribution @ 75% for micro, 60% for SMEs for the project range ₹15 lakh to ₹40 lakh.)

MSMEs can apply alone or along with a design company or a design consultant/academic institute for design projects by submission of a proposal to the Design Clinic Centre or through the internet by making an online application.

1.3.6. Technology and Quality Upgradation Support to MSMEs

The scheme advocates the use of energy efficient technologies (EETs) in manufacturing units so as to reduce the cost of production and adopt clean development mechanism.

Nature of assistance

Capacity building of MSME clusters for energy efficiency/clean development and related technologies. Funding support of up to 75% for awareness programmes, subject to maximum of Rs 75,000 per programme;

Encouraging MSMEs to acquire product certification / licenses from National / International bodies. 75% of the actual expenditure, subject to a maximum Rs 15;

25% of the project cost as subsidy by Government of India, balance amount to be funded through loan from SIDBI/banks/ financial Institutions. MSMEs are required to make the minimum contribution as required by the funding agency;

75% subsidy towards licensing of products to national/ international standards; ceiling Rs 1.5 lakh for obtaining product licensing/marking to National standards and Rs 2 lakhs for International standards.

1.3.7. Entrepreneurial and Managerial Development of SMEs through Incubators

Related Scheme

Entrepreneurial and Managerial Development of SMEs through Incubators

Description

The objective of the scheme scheme is to provide early stage funding to nurture innovative business ideas (new indigenous technology, processes, products, procedures, etc.) that could be commercialised in a year. The scheme provides financial assistance for setting up business incubators.

Nature of assistance

Funding support for setting up of ‘Business Incubators (BI)’: The cost may vary from Rs 4 to 8 lakh for each incubatee/idea, subject to overall ceiling of Rs 62.5 lakh for each BI.

a) Upgradation of infrastructure Rs 2.50 lakh

b) Orientation/training Rs 1.28 lakh

c) Administrative expenses Rs 0.22 lakh

Total assistance per BI Rs 66.50 lakh

Who can apply?

Any individual or MSME with innovative ideas ready for commercialisation can apply to the host institution (e.g., IITs, NITs, technical colleges, research institutes, etc.) in order to obtain fund support. See the list of host institutions at following web address:

Funding support for introduction of appropriate course modules in technical institutions through expert organisations.

Funding support up to Rs 79,000/- per programmefor conducting QMS/QTT awareness campaign for MSEs through expert organisations.

Funding support up to Rs 2.5 lakh per unitfor implementation of QMS andQTT in selected MSMEs through expert organisations.

Funding support for conducting C-watch study for product having threat from foreign goods.

Who can apply?

Expert organisations like Quality Council of India (QCI), National Recruitment Board for Personnel and Training, Consultancy Development Corporation, National Productivity Council, Standardisation, Testing & Quality Certification (STQC, a Society under the Ministry of IT), IIQM (Indian Institute of Quality Management), Industry Associations that have taken active interest in QMS/QTT, Technical Institutions, Engineering Colleges, Tool Rooms and similar bodies and MSEs can apply for assistance under this scheme.

How to apply?

MSEs or clusters may contact Office of the DC- MSME. The DC office will finalise the MSME clusters for conducting the Awareness Programme on Quality Management Standards and Quality Technology Tools (QMS/QTT). Web link: Download The file ( bytes)

1.3.9. Building Awareness on Intellectual Property Rights (IPR)

Related Scheme

Building Awareness on Intellectual Property Rights (IPR)

Description

The purpose of the scheme is to enhance awareness among the MSMEs about Intellectual Property Rights, to take measures for protecting their ideas and business strategies. Effective utilisation of IPR tools by MSMEs would also assist them in technology upgradation and enhancement of their competitiveness.